Once an entrepreneur gets into the construction business, they soon find out that the business is not the easiest one to survive. It’s an exciting business to be sure, and there are lots of ways to make big money, but there are also lots of important decisions to make. One of those essential decisions is about whether to rent or buy the equipment needed to do the job or not. The fact is that it’s an easy decision; once you’ve looked at all the possibilities, it’s easy to see why hiring equipment makes so much financial sense. The advantages are simply too numerous. Here’s a short round-up of how equipment rental or plant hire services can benefit your start-up enterprise.
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It’s a lot of money saved
Compared to buying equipment outright, renting is by far the best choice if you’re not sure whether or not you will need the equipment at some later date, or if your cash flow is still not stable enough to warrant a long-term commitment. It’s not just about the cost of the asset itself; it’s also about the insurance, the storage, the maintenance, and the salaries required to perform all tasks necessary for optimum upkeep. Financially speaking, it’s very practical.
It’s about financial planning
When you buy a piece of equipment – even if it’s with a lease-to-own contract – you commit yourself to a long-term business deal, and this will influence your cash flow prospects. What’s more, even if you are sure you might need the equipment later on and can get a pretty good deal, you’ll surely need to put up a deposit or a down payment. You don’t have those kinds of problems with rentals. Your cashflow is free and not restricted.
Credit rating remains intact
That’s right, there’s no need for you to get a loan for a down payment, and since you aren’t buying anything, your name will not be registered anywhere. That means your credit rating remains stable – a big advantage.
Yes, there are tax benefits
Without going into details, there are some very good benefits regarding taxes. It’s not a capital expense; it’s a cost of doing business – hence, tax deductible.
However, lest there is any confusion and you think there are only financial benefits, here’s another great benefit: there’s no need for maintenance, the hiring of extra staff, insurance management, or storage facilities. Hiring equipment from a good plant hire service such as Plant Hire Preston experts like the Ruttle Group of Companies doesn’t just eliminate many problems, it allows the owner of a business to plan ahead with a confident mind. A good plant hire service brings peace of mind, and that in itself is worth millions. Management, after all, isn’t just about finance; it’s about reaching a specific goal, and doing it in the most elegant way.by